Acme,IncIs Considering a Four-Year Project That Has an Initial Outlay

question 98

Essay

Acme,Inc.is considering a four-year project that has an initial outlay or cost of $80,000.The respective future cash inflows for years 1,2,3 and 4 are: $40,000,$40,000,$30,000 and $30,000.Acme uses the discounted payback period method and has a discount rate of 12%.Will Acme accept the project if it's payback period is two and one-half years?

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Definitions:

Edmondson

might refer to Amy Edmondson, known for her work on teaming, psychological safety, and organizational learning, though without additional context, the specific reference is unclear.

Hackman

Refers typically to J. Richard Hackman, a psychologist known for his work on team dynamics, leadership, and organizational behavior.

Effectiveness Of Teams

The degree to which a team achieves its goals, fulfills stakeholder expectations, and succeeds in its tasks and challenges.

Adaptive Growth

The capacity of an individual or organization to evolve and grow in response to changes and challenges.